Morgan Stanley Opens 60-Day Research Tactical Idea on TAL Education Group

Morgan Stanley has opened a research tactical idea on TAL Education Group XRS believing that the share price will rise over the next 60 days. In the report, Morgan Stanley writes, "This is because the stock has traded off recently, making short term valuation much more compelling. Despite softer near-term margins, due to heavier investments for future growth, we remain positive on TAL Education's long-term outlook. The company continues to enjoy resilient enrollment demand and pricing power, with deferred revenues climbing 69% YoY to a record high in February 2012, signaling robust demand in the coming quarters. A more controlled 1-on-1 tutoring expansion and better utilization for its small class business may offer earnings upside." Morgan Stanley maintains its Overweight rating on TAL Education Group, which is currently trading up $0.10 from Friday's $10.90 closing price.